Are you a truckie or courier looking to expand your fleet with used trucks or used trailers? The best rates and terms on used truck financing are at your fingertips.
When it comes to truck loans, many people are under the impression that it will cost them more to finance an older truck compared to the cost of financing a new truck. We do not discriminate against older vehicles. We understand that commercial vehicles, like trucks and trailers are a crucial part of a business’s operations. Most new business owners are not able to purchase an expensive new truck.
Getting truck finance can be a stressful experience, but it doesn’t have to be that way. The goal of this blog post is to give you the knowledge necessary to make an informed decision about your truck financing or loan application
What loan amounts are available?
The minimum truck loan amount that you can apply for is $15,000. If you are looking to buy a newer truck or lease one, then there is no limit on how much money you can borrow from an approved lender.
Do I need a deposit?
If you own property, and are considered as asset-backed, you have a good chance of getting approved for a truck finance without having to put any money down. This is obviously subject to the lender’s approval. If, however you are a renter or have an adverse credit history recorded on your credit report, you may be required to provide a deposit of between 10% to 20%.
Truck loan interest rates
Truck loan interest rates are set by the lender, and it determines how much you will pay for your loan or truck finance over a certain period. Interest rates fluctuate constantly. They are also dependent on your personal situation, e.g., Experience in the industry, work contract letter confirming pay, property owner or renter, Deposit power and an acceptable credit file from a Credit reporting bureau. We offer a range of rates to suit your needs. Truck loans are available at competitive variable interest rates, as well as fixed-interest and even deferred payments for primary producers.
Typically, a bank won’t finance any vehicle older than 8 years, even if you have good credit. If you don’t have great credit, you may find it difficult to finance through a bank, even for a small new car.
But banks are far from the last option when it comes to lending. Most banks look at trucks older than 10 plus years old, as high-risk assets. For instance, if a truck that was 10 plus years old, had to be repossessed and sent to auction, the number of buyers looking for an older truck would be reduced. Therefore, the ability to reach a sale price required to payout the loan would be at risk. Also, the likelihood of an older truck incurring major mechanical failures and rebuilds is also increased. So, the banks tend to shy away from these assets.
Diverse funding solutions
We provide our business clients with a range of personalised, fast and flexible finance options and private business loans. We specialise in a variety of finance solutions Australia wide utilising non-bank lenders. Should you be having problems getting a loan from the bank? Out of time and out of options? We can help.
At Berra Finance we can customise a private loan solution. Because we have private funds available for truck loans, we can have your financing approved fast.
Is it hard to get truck finance or truck loans as an Owner Operator?
No. Owner operators can apply for a low-doc loan to purchase or lease trucks, with the same ease as major companies. With no documentation on income required, it is easy to get finance approved because all that matters is your ability to repay the debt.
Do you help self-employed with a truck loan?
Yes. We have a range of different types of financing that are available, such as low doc loans and fully verified options for self-employed people.
The process for getting truck finance is relatively easy. The first step to applying for a loan or financing is to complete an Asset Finance Enquiry where you will fill out some basic information about yourself such as your contact details, employment status, vehicle details etc. This should take around 5 minutes at most.
Should I buy a new truck or a used truck?
Some people prefer to buy new trucks because the resale value is higher and there are less chances of mechanical faults. Others may choose a used truck over a new one, as it will be cheaper but more likely to have some issues with reliability or wear-and-tear. It’s important that you know what type of truck suits your needs before you start looking at any trucks. Having said that, most of our customers are small business owners who prefer to finance older assets.
Can I buy a used truck?
Yes, you can. Just because the truck is old does not mean that it cannot be financed. In fact, the truck finance market is not just for new trucks. If you are looking to purchase an older one with good resale value and low mileage, this type of financing could be perfect for your needs.
How Long Is the Truck Loan Term?
The maximum loan payback period is five years if the truck is older than 10 years. Some lenders will even allow you to include a balloon/ residual payment at the end of the contract. But this tends to be at the lender’s discretion, depending on the client’s personal circumstances.
Truck loan eligibility criteria
This will determine whether you are eligible for a loan and the amount. You’ll need to provide us with information about your business or employment history, as well as details of your assets and liabilities. At a minimum you should have the following:
- 6 Month ABN Registration
- Work source letter
- Business bank statements (6 months)
- No unpaid defaults on credit file
- Industry experience
Good deals won’t wait around for slow-moving banks and lenders to organise and approve your finance. Sellers want to sell quickly and usually have plenty of buyers making offers. The used vehicle market is highly competitive so once you’ve found a good quality, well-priced used heavy vehicle you need to move quickly or risk losing the deal.
Can you help me with business finance or working capital too?
Yes. We also offer a range of business finance and working capital solutions to help you with your financing needs, including overdrafts, term loans and more.
The benefits include:
Fast approvals without having to provide documentation on income or assets
Competitive interest rates that are tailored for everyone’s requirements
Flexible term lengths to suit your needs
Range of different types for business finance available
Can I apply online? Yes! We have a range of loan products that are approved in minutes over the phone or online.
You can hop over to our contact page, or simply fill out this Asset Finance Enquiry form and we’ll get back to you.
Expert finance consultants
As truck finance specialists, we understand the variety of challenges that businesses face when operating in the transport industry. We take the time to understand your individual business’s needs and pick the best truck finance solution for you from the wide variety of options available. Whether you are a contractor or running an entire operation, we can get you in the driver’s seat in no time.
DISCLAIMER: The information contained in this document is general in nature and should not be relied upon as legal advice. Berra Finance does not warrant the accuracy or completeness of any representations made in the document or that the material is suitable for any purpose. You are responsible for assessing the material and seeking your own legal or financial advice. To the fullest extent permitted by law, Berra Finance excludes all liability for loss or damage (including indirect or consequential loss or damage) which may be incurred in connection with your use of or reliance on the material contained in this document. This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of Berra Finance as at the date of publication and may later change without notice.